Pakistan’s Economic Crisis: 1.5 Lakh Jobs Cut, Ministries Closed Amid IMF Pressure - Read Here
In a bid to secure financial aid from the International Monetary Fund (IMF), Pakistan has made drastic decisions, including slashing 1.5 lakh jobs and shutting down six ministries. This move comes as the country grapples with its worst-ever economic crisis, leaving the public outraged and worried about the future.
IMF’s Tough Conditions Spark Outrage
To meet IMF’s stringent demands for a bailout package, the Shehbaz Sharif-led government had no option but to take these harsh measures. Despite the IMF’s financial assistance, the people of Pakistan continue to face increasing hardships. Inflation is soaring, and unemployment has spiked following the mass job cuts.
The decision to terminate 1.5 lakh jobs comes as a shock to a population already struggling to afford basic necessities due to inflation. The IMF’s conditions for the bailout required the government to implement cost-cutting measures, and job reductions were part of this plan.
Ministry Closures and Mergers
In addition to the job cuts, the government has shut down six ministries and merged two others. This move is aimed at reducing administrative costs and meeting the IMF’s stipulations for the release of the next tranche of funds. Although these steps were necessary to secure $7 billion from the IMF, they have only intensified the plight of the common people.
More Burden on Citizens with Increased Taxes
The IMF has also pushed Pakistan to increase its tax-to-GDP ratio. As a result, the government is now looking to impose heavy taxes on sectors like agriculture and real estate. Furthermore, subsidies may be slashed, putting even more financial pressure on the already struggling population.
Pakistan’s Ongoing Economic Struggles
Pakistan’s financial woes have been mounting over the years, with inflation and debt crises creating economic chaos. Last year, the country narrowly avoided default thanks to IMF’s intervention. However, the situation remains grim.
Finance Minister Mohammad Aurangzeb has acknowledged the tough road ahead, stating that the country is working on meeting IMF’s demands and improving its economy. The minister also confirmed that tax defaulters will be barred from purchasing properties and vehicles, further emphasizing the government's strict stance on compliance.
